Sri Lanka Amana Takaful cuts losses, sees scope in medical insurance

Sri Lanka's Amana Takaful Insurance said it made a premium income of over a billion rupees in 2008, helping to reduce losses, and that it expects medical insurance to grow this year.
Gross Written Premium grew by 26.56 percent to 1,024 million rupees with life insurance growing by 44 percent to reach 188 million rupees and General Insurance up 23 percent to achieve a premium income of 835 million rupees.

A company statement said total assets grew by 14.87 percent to reach 1,053 million rupees in 2008 as against 917 million rupees in 2007.

Prudent underwriting and improved investment income helped Amana Takaful Insurance to reduce its operating loss by 65.7 percent, the company said, without giving further details.

Amana Takaful Insurance chairman Tyeab Akbarally said they expect "significant growth" in the family Takaful business in 2009 and also from the medical insurance business.

"There is a lot of scope for medical insurance in Sri Lanka, given the high cost of quality residential medication."

Though the firm's investment income grew significantly, one of their main challenges remains to be the dearth of Islamic investment opportunities in the country, he also said.

"While conventional insurance companies in Sri Lanka largely benefit from the high returns on investment, as a Takaful operator, our investment opportunities are limited," Akbarally said.

"Islamic investment opportunities are still in their infancy in Sri Lanka."

The company said it is ranked among the top eight players in the General Insurance sector and ranked in ninth place in the Life Insurance sector in Sri Lanka.

The firm started in 1999 in collaboration with Takaful Malaysia, one of the largest Takaful operators in the world.

--lanka business online